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ACEABLE LAW OF AGENC Y
REVIEW EXAM QUESTION S WITH
100% CORRECT ANSWER S
Question : Here are the four major types of agency acts:
CORRECT ANSWER : ListingBuyingLeasingProperty
Management
Question : TREC's purpose is to
CORRECT ANSWER : regulate educational and
licensing programs that maintain standards AND interpret legislation that affects the real estate profession — primarily the Texas Real Estate License Act (TRELA).
Question : Integrity
CORRECT ANSWER : Satisfy to the commission
(TREC) that the candidate meets and exceeds their character standards (honesty, trustworthiness, and integrity).
Question : Competence
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CORRECT ANSWER : Demonstrate competence by
passing the licensing exam.
Question : Broker:
CORRECT ANSWER : An individual licensed by TREC
to perform brokerage duties; sponsors sales agents to represent clients on their behalf
Question : Sales agent:
CORRECT ANSWER : An individual holding a sales
agent license from TREC who is sponsored by a broker
Question : License holder
CORRECT ANSWER : A broker or a sales agent
licensed by TREC
Question : REALTOR
CORRECT ANSWER : A licensed sales agent who is a
member of the National Association of REALTORS®.
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Question : Brokers are
CORRECT ANSWER : liable for all sponsored actions
committed by their sales agents.
Question : Sales agents represent
CORRECT ANSWER : their broker in all transactions in
real estate dealings and transactions.
Question : Listing Agent:
CORRECT ANSWER : A broker representing a seller in
a real estate transaction, a.k.a. seller's agent, seller's broker, or listing broker
Question : Buyer's Agent:
CORRECT ANSWER : A broker representing a buyer in
a real estate transaction, a.k.a. selling agent, buyer's broker, or selling broker
Question : Tenant's Agent
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CORRECT ANSWER : A broker representing a tenant in
a real estate transaction
Question : Landlord's Agent:
CORRECT ANSWER : A broker representing a landlord
in a real estate transaction
Question : Principal
CORRECT ANSWER : The major parties of the
transaction (the buyer and seller or landlord and tenant) or a party who has authorized an agent to represent them
Question : Client (principal)
CORRECT ANSWER : Anyone who has an agency
relationship with you or your broker is your client
Question : Customer
CORRECT ANSWER : A party to the transaction who
has an agency relationship with another license holder